Thursday, 14 February 2013
In-Out and Shake it All About!
David Miliband is apparently about to pledge that Labour would re-introduce the 10p starting rate of income tax, first introduced and later abolished by Gordon Brown before he toddled off into obscurity. In Miliband’s case he says that the withdrawal of the starting rate was a grave mistake that he would correct as soon as he was able, probably funding the action by some sort of ‘Mansion Tax’.
The Mansion Tax has been ruled out by the coalition for the time being, despite being one of the Lib Dem’s great loves, so it might be that we have two parties campaigning the next election on that ticket.
It seems that U-Turns abound in politics at present. Michael Gove famously was about to axe GSCE’s and then decided that he wasn’t and one wonders from where the next surprise change of heart will come.
For my part, I am actually quite positive toward the 10p rate as I feel that it promotes working and contributing, both of which have to be a good thing. It does, however complicate the tax system once more and one also wonders how much it costs to administer a further rate band, both to HMRC and to industry.
What is interesting is that the next election may be a way off yet, but the jostling for policy high ground has very much begun and it is that which has thrown up some of these radical proposals. We should give credit where it is due – after all, if ditching a piece of dogma results in a positive and progressive policy then it has to be a good thing – U-Turn or not.